The complete guide to temporary employment contracts

The temporary employment contract (CTT) is a flexible solution for covering a one-off need for manpower via a temporary employment agency. Here you'll find the essential rules (duration, remuneration, obligations) relating to this temporary employment contract.

The basics of temporary employment contracts

Definition

A temporary employment contract enables a person to be hired by a temporary employment agency to carry out an assignment with a user company. Also known as a temporary employment contract, this system involves three parties: the temporary worker, the temporary employment agency and the client company.

It therefore requires the conclusion of two contracts. On the one hand, there is a provision contract signed between the temporary employment agency and the client company. Secondly, an assignment contract between the agency and the employee. The latter is remunerated by the agency, and not directly by the company where he or she carries out the assignment.

Temporary employment contracts

The Labour Code authorizes the use of CTTs in specific situations:

• Replacing an employee who is absent or whose employment contract has been suspended
• Waiting for a new employee on permanent contract
• Vacancy following the departure of an employee before the position is abolished
• Replacement of the head of a craft, industrial or commercial business, a self-employed person or his/her spouse
• Temporary replacement of a farm manager, family helper, farm partner or their spouse
• Temporary increase in activity
• Seasonal employment
• Usual" jobs

A CTT can also be authorized when the assignment is designed to facilitate the recruitment of unemployed people experiencing particular social and professional difficulties. Similarly, when the agency and the user company agree to provide the employee with additional vocational training. Other cases, both authorized and prohibited, are clearly detailed in the French Labor Code.

What is the duration of a temporary contract?

The assignment contract has a fixed term from the moment it is signed. However, it is possible not to have a fixed term when the contract concerns :

• replacing an absent or suspended employee
• waiting for a new employee on permanent contract
• a seasonal mission
• a customary job
• replacement of an entrepreneur, farmer or self-employed person

This term may be set by the user company's collective bargaining agreement. Failing this, the French Labor Code stipulates a maximum contract duration of 18 months (including renewals). However, exceptions apply depending on the reason for using the CTT:

Compensation and benefits

How much does a temporary contract pay?

Temporary employees must receive a salary at least equal to that of a permanent employee occupying an equivalent position in the user company. In addition, they are entitled to any bonuses and fringe benefits that may apply to equivalent positions and qualifications. Finally, public holidays are paid, regardless of seniority, if other company employees are entitled to them.

The pay slip is issued by the temporary employment agency, which remains the legal employer. The agency then passes on its costs (remuneration, social security contributions, management fees) to the user company via an invoice. This clearly distinguishes a temporary employment contract from a conventional fixed-term contract, where the end employer manages payroll directly.

In addition, temporary employees are entitled to collective company benefits (luncheon vouchers, profit-sharing, transport allowance) if other permanent employees enjoy the same rights. This equality is designed to guarantee fair treatment and prevent any form of discrimination or excessive casualization.

What benefits are available?

At the end of each assignment, the temporary worker receives an end-of-assignment allowance, commonly known as a "prime de précarité". This generally amounts to 10% of the total gross remuneration earned during the assignment. However, it is not paid in the following cases:

• the temporary worker signs an open-ended contract with the user company immediately after the end of the assignment
• additional vocational training is provided to the employee by the user company at the end of the assignment
• the contract is terminated early at the employee's initiative
• the contract is terminated early for serious misconduct or force majeure
• the assignment contract was of a seasonal nature (if the agreement applicable in the company does not provide for an end-of-contract indemnity)

In addition to the precariousness bonus, the temporary worker receives an indemnity in lieu of paid vacation. This also represents 10% of gross pay (including end-of-assignment indemnity). Please note that the duration of the assignment includes :

• maternity, paternity and adoption leave ;
• time off work due to accident or illness, whether work-related or not;
• periods when the temporary worker is called up for military service, if the starting point of these periods occurs during an assignment.

This indemnity is also paid at the end of the contract, and is mentioned on the last pay slip.

Managing a temporary employment contract

What the contract must contain

The secondment contract, signed between the temporary employment agency and the user company, must specify :

• Reason for appeal ;
• The end of the mission ;
• A clause providing for the possibility of modifying the term of the assignment under the conditions set out in the Labour Code;
• The specific characteristics of the position to be filled;
• The professional qualification required ;
• Work location and schedule ;
• The type of personal protective equipment used by the employee;
• The amount of remuneration and its various components.

The assignment contract is drawn up in writing between the temporary employment agency and the employee, and includes the above-mentioned information. It must also specify :

• The temporary employee's professional qualifications ;
• Terms and conditions of remuneration ;
• Terms and conditions of any trial period ;
• A clause stating that repatriation is the responsibility of the temporary employment agency if the assignment is not carried out in mainland France;
• The name and address of the agency's supplementary health and welfare fund;
• Mention that the user company is not prohibited from hiring the employee at the end of the assignment.

The assignment contract must be sent to the employee no later than two working days after it is made available. Failure to meet this deadline may result in the payment of compensation, payable by the employer, which may not exceed one month's salary.

If the contract does not comply with the legal framework, the employee can request that it be requalified as a permanent contract, with retroactive effect, at the industrial tribunal (Conseil de prud'hommes). These two contracts form an indivisible whole, guaranteeing the proper execution of the assignment.

Trial period, renewal and end of assignment

A trial period is not compulsory, but may be stipulated by collective agreement or branch agreement, which then sets its duration. Failing this, the French Labor Code stipulates a trial period of two working days for an assignment of less than one month. Between one and two months, the trial period is three days. For assignments of more than two months, the trial period may extend to five working days.

Renewal of a temporary employment contract is possible if the original reason for the contract persists, and if the total duration (initial assignment + renewal) does not exceed the legal limit. The number of renewals allowed depends on the industry, but is generally fixed at two.

At the end of the assignment, the temporary worker receives his compensation (end of assignment, paid leave) and the contract ends. The employer issues the employee with a certificate of employment, a final pay receipt and a France Travail certificate.

The user company may also decide to hire the temporary worker on a permanent basis. In this case, the length of assignments completed during the 3 months prior to recruitment is taken into account to calculate the employee's seniority, and deducted from the trial period if the new contract provides for one. The employee may refuse the CDI, but this will have consequences for his or her entitlement to back-to-work allowance (ARE).

If the temporary employment agency wishes to conclude a new contract with the employee for the same position, it must respect a waiting period. For contracts of 14 days or more, the waiting period must be at least 1/3 of the duration of the previous contract (including renewals). For contracts of less than 14 days, the waiting period must be at least half the duration of the previous contract.

In the absence of provisions to the contrary in the collective bargaining agreement or a branch agreement, the time limit does not apply when recourse to a temporary assignment contract is justified by :

• a new absence of the replaced employee,
• urgent work required for safety reasons,
• seasonal or customary employment,
• early termination of the contract by the employee or refusal to renew.

Early termination of a temporary contract

The temporary employment contract may be terminated without cause by either party during the trial period.

Thereafter, if the early termination is at the temporary employment agency's initiative, it must offer the temporary worker a new assignment contract within 3 working days, except in cases of serious misconduct or force majeure. This contract must not contain any major changes to an essential element (pay, qualifications, working hours, etc.). Failing this, or if the duration of the new contract is less than that remaining on the previous contract, the agency guarantees the employee remuneration equivalent to that which he or she would have received until the end of the contract, including end-of-assignment indemnity.

Temporary employees may terminate their assignment early if they sign a permanent contract, or in the event of force majeure. Unless the parties agree otherwise, a notice period of between one day and two weeks must be observed. In all other cases, the employee must pay damages to the temporary employment agency corresponding to the loss suffered.

Penalties

In the event of misuse of the temporary employment contract or failure to comply with legal obligations (lack of reason, failure to comply with the maximum duration, failure to comply with the waiting period, etc.), both the user company and the temporary employment agency are liable to penalties. The French Labor Code provides for fines ranging from €3,750 to €7,500, plus six months' imprisonment in the event of a repeat offence.

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FAQ - Frequently asked questions

What's the difference between a fixed-term contract and a fixed-term contract?

A fixed-term contract (CDD) directly links an employer and an employee, while a temporary employment contract (CTT) involves three players: the temporary employment agency (legal employer), the temporary employee and the user company. In a CDD, the company pays and manages the employee. In a CTT, the agency pays the salary and the user company provides operational supervision.

What are the four types of employment contract?

In France, there are four main types of employment contract: CDI (contrat à durée indéterminée), CDD (contrat à durée déterminée), CTT (contrat de travail temporaire) and specific contracts (CUI, CESU). Each type meets specific needs: permanent employment for the CDI, flexibility or seasonality for the CTT, one-off missions for the CDD, and the hiring of people in difficulty or for personal reasons for the specific contract.

What is the CDI intérimaire?

The CDI intérimaire is a contract signed between an employee and a temporary employment agency for an indefinite period. The worker then carries out several successive assignments with various user companies, while retaining a base of guarantees (minimum remuneration, access to training, social protection). This arrangement provides greater stability while preserving the flexibility of a multi-company career path.